President Tells Ethnic Chinese To Think of Their Workers

President Tells Ethnic Chinese To Think of Their Workers
Arientha Primanita, Agus Triyono & Agustiyanti | February 04, 2012

As regular readers will know I have been saying this for years - however let us not focus down on a specific ethnic group it is a national problem supported by national and local legislation and policing. The enforcement of minimum wages is appalling unless its an overseas company who tend (not always) to have better T&C for comparable workers anyway!!

The President, if serious, would do well to look to several of his cabinet to set that example in payments he mentions.

The rhetoric if it was intended to divert focus onto Ethnic Chines this may well be a diversionary tactic. However after the late 1990's riots and attacks on ethnic Chinese one would only say this statement is irresponsible and is not conducive to harmony...

President Susilo Bambang Yudhoyono told ethnic Chinese businesspeople on Friday to improve the welfare of their workers as labor unrest continued to trouble parts of the country.

“I hope businesses can adjust wages in accordance with their true ability to pay,” he told the gathering in Jakarta for Chinese New Year.

Yudhoyono said that as companies saw their profits rise, they should share the wealth with workers through better pay.

“We should not wait for workers to demand justice,” he said. “We must be wise and think of their livelihood.”

West Java saw massive labor protests after a court ruled in favor of the Indonesian Employers Association (Apindo), which had challenged a gubernatorial decree increasing the minimum wage. Thousands of workers in Bekasi from about 300 companies blocked the Jakarta-Cikampek toll road for several hours on Jan. 27.

There were more strikes planned, but Apindo and the labor unions reached a deal that helped prevent further action.

Apindo had also announced a that it would file a lawsuit challenging a minimum wage decree issued by the Banten governor, but the specter of a massive strike that had been planned for Friday and the government’s entreaties caused the employers’ association to back down.

In the wake of the labor unrest, Yudhoyono has been criticized by both sides. Businesspeople say he should have taken a stronger stance against the workers and complain that rowdy unions will make foreign investors think twice about bringing their money into the country.

Labor leaders have castigated the president for doing nothing to improve the welfare of the working class.

The wage decree in Banten was issued by Governor Ratu Atut Chosiyah last month, ahead of the gubernatorial election in the province. It raised the minimum monthly wage in Tangerang, which is home to numerous factories, from Rp 1,379,000 to Rp 1,527,150 ($153 to $170).

The central government, trying to avert the kind of unrest seen in Bekasi, asked Apindo to accede to the workers’ demands and drop its lawsuit. Apindo agreed to drop the lawsuit during a meeting with workers arranged by the government.

But tensions are still simmering. Workers are upset about a clause in the deal that allows employers who can prove they are unable to meet the required wage increase to ask for a delay in its implementation. And on Friday, a confederation of labor organizations, which has branches in 22 provinces, threatened to hold a massive strike on May 1.

“We are just consolidating. We have agreed that we will hold simultaneous rallies in 22 provinces on May 1 so that our demands are met,” said Mochtar Guntur Kilat, the organization’s deputy president.

He said the rallies would be concentrated at government buildings and public facilities.

“We will prove that we are not afraid of threats from the authorities,” he said.

Manpower and Transmigration Minister Muhaimin Iskandar said the central government would help governors, mayors and district heads monitor minimum wages in their areas.

A committee, he said, had been formed to do this.

Additional reporting from Investor Daily
The Jakarta Globe